SUBSIDIES FUEL E-BIKE SALES

The Electric bike(e-bike) segment has seen a rapid growth where the local governments have offered subsidies against the states that are charging a value added tax of 12 per cent.
Disclosing this, Mr Sohinder Gill, the president of Society of Indian Electric Vehicle Manufacturers, said: "For e-bikes, there is a zero per cent VAT in Delhi. The Delhi government also offers a 15 percent subsidy it pays 15 per cent e-bike's cost to the manufacturer. As a result, more than 30 per cent of the e-bikes produced were sold in Delhi itself in 2008-09."
if other state governments also offer subsidies then the Delhi experience can be replacated in other cities across india, he added.
During 2007-08, e-bikes the sales volumes were 85,000 and grew by about 29 per cent to 1,10,000 in 2008-09. The e-bike manufacturers were expecting more growth in the background of the economic slowdown, as e-bikes are not only cheaper but save a lot on fuel cost.
Mr Gill said:"Though it's mandatory for all states to bring down the VAT to four per cent some of the states have not done so."